Nasdaq futures plunged more than 2% in early European trade as AI-linked stocks tumbled across Japan and South Korea, signaling a global tech selloff that threatens US markets. The selloff, driven by concerns about valuations and a hawkish Fed pivot under Chairman Kevin Warsh, has pushed investors to pull back from record highs in AI-linked names. Chipmakers Intel and Marvell Technology led premarket selloffs, with broader tech indices sliding sharply.

The dollar held firm on rate-hike expectations despite modestly lower Treasury yields, while oil prices dropped 1.6% to $72.69 a barrel as traders welcomed eased Iranian sanctions and increased maritime traffic through the Strait of Hormuz. Analysts noted this could ease supply pressures, though the broader market impact remains uncertain as tech valuations remain stretched.

Investors are now reassessing AI stock valuations amid growing concerns about sustained high interest rates and potential Fed tightening. The sharp selloff in memory stocks adds pressure on chipmakers like Intel and Marvell, whose near-term performance will hinge on whether demand stabilizes amid shifting macroeconomic dynamics and supply chain adjustments.